Assets in a portfolio


Problem: Assume there are only two assets in a portfolio. If this portfolio has a positive weight for each asset, can its (portfolio.s) variance be greater than the variance of returns on the asset in the portfolio that has the higher variance of the two? Explain. Can the variance of the portfolio be smaller than the variance of returns on the asset in the portfolio that has the smaller variance? Explain.

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Microeconomics: Assets in a portfolio
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